Bitcoin jumps over 3,000 dollars to above 72,800 and approaches the historical peak of March.

The price of the digital currency Bitcoin surged sharply on Tuesday, achieving its largest daily gain since August 8, after rising by more than $3,000.

In terms of trading, the price of Bitcoin increased by about 5% today, reaching $72,994, nearing its all-time high of $73,794 recorded on March 14, after Bitcoin experienced gains of over 9.5% over the past five days, rising from $65,600 to nearly $73,000.

This sharp increase seen in the largest cryptocurrency by market capitalization came amid a wave of investor interest as a safe haven with the upcoming U.S. presidential elections. Bitcoin received significant support from both candidates, which prompted investors to flock to it amid rising uncertainty.

Bitcoin's gains were driven by four main factors:

Massive inflows into Bitcoin ETFs:

Major investments in Bitcoin exchange-traded funds (ETFs), including nearly $480 million from giant companies like BlackRock and Fidelity, have significantly impacted demand. This shift shows that investors prefer direct exposure to Bitcoin through ETFs, anticipate price increases, and are avoiding cash and speculative trades involving futures.

Political support from Trump’s deal:

Former President Donald Trump's recent interview provided substantial political support, influencing Bitcoin's correlation with his rising election expectations for 2024. This political factor, combined with the historically high open interest in Bitcoin futures, propelled Bitcoin to new high levels.

Impact of massive short-covering:

The massive short-covering contributed to the rise in Bitcoin's price, as more than 65,000 traders were liquidated, with total short positions amounting to approximately $169 million. The forced buybacks from the liquidated short positions accelerated Bitcoin's ascent.

Buying activity by Bitcoin whales:

Large investors on the Binance platform are boosting Bitcoin’s value, as evidenced by their intense purchases two weeks ago.

With rising demand for ETFs and steady inflows from American investors, Bitcoin whales on Binance are leading this current surge, highlighting strong and sustainable buying pressures.